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Title Global e-marketplace launched for trade of surplus
Source Korea Herald Date
Global e-marketplace launched for trade of surplus

July 5, 2000. The Korea Herald.

SurplusGLOBAL, Inc, a domestic Internet start-up, has recently launched an international business-to-business e-marketplace (www.surplusglobal.com) to auction idle facilities, surplus and used goods.

The company said its diverse services will be targeted for industrial sectors that lack a central market for excess and used goods, including industrial machinery, computers, telecom, electronics and automobiles.

The company sees a tremendous potential in the currently untapped market. According to a Merrill Lynch-World Bank survey, the size of used and surplus assets in the Asia-Pacific is estimated worth $411 billion in 2000.

"The new service will provide an effective market to turn the huge amount of assets into productive resources and improve its member companies' cash flow," said Bruce Kim, company chief executive.

SurplusGlobal offers a multilingual directory, information, database and transaction services in Korean, English, Japanese and Chinese.

The company will initially target customers in the Asia-Pacific region and will expand its reach worldwide.

Currently, 20-odd Internet sites are competing the used and surplus asset matchmaking market, according to Kim.

"Most of the sites are United States-based. Only two Asian sites - each based in Hong Kong and India - operate with their brand and service features, yet at a rudimentary stage," he said.

A few domestic e-market places are offering an auction for such goods, but their coverage is limited to local companies.

"A great number of customers expressed dissatisfaction with existing distribution channels while showing strong interest in our proposed service," he said.

The company offers a standard auction system coupled with a first-come-first-serve basis, transaction history accumulation and incentive points. It also sports various value-added services such as member credit assessment, quality inspection, asset-value appraisal and logistics data.

To build broad membership, the company adopted a fixed amount fee scheme in the first business year. Starting from the second half of 2001, it will levy a 1 percent transaction commission and promote a profit-sharing program with customers. The average transaction fee for its U.S. competitors is 5 percent.

SurplusGLOBAL also plans to pursue strategic alliances with major trading firms and big manufacturers, while seeking diverse profit resources on and offline, such as database marketing and Web promotion.



Updated: 07/05/2000
by Hwang Jang-jin Staff reporter

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